Perquisites - Rent-free Accommodation - (New) Rule 15(2) / (Old) Rule 3(1)

Rent-free accommodation perquisite rules set out salary-based valuation, hotel exemptions, and special non-taxable accommodation categories.

Valuation of rent-free accommodation as a perquisite depends on whether the employer is a Government employer or other employer, and whether the accommodation is unfurnished, furnished, leased, rented, or in a hotel. Government accommodation is valued by reducing the employee's actual rent from the licence fee, while furnished accommodation adds a furniture component. For other employers, the perquisite value is linked to salary and city population, with different percentage bands, and hotel accommodation is exempt up to 15 days on transfer.